For the second consecutive week, all mortgage rates increased simultaneously, reaching some of the highest average rates we've seen this year. According to Freddie Mac, adjustable rate mortgages reached their highest levels in over a year. This increase in mortgage rates during the last two weeks has affected the decision of homebuyers, decreasing the amount of mortgage applications.
30-year fixed-rate mortgages increased from 3.87% last week to 3.98% this week. This is the highest rate since the last week of July 2015.
15-year fixed-rate mortgages also rose significantly to 3.2% this week compared to 3.09% one week ago. The last time 15-year rates were this high was during the third week of July this year.
5-year adjustable-rate mortgages increased this week as well, reaching 3.03% compared to 2.96% last week. This is the highest 5-year rate this year, and the highest since the beginning of October 2014.
1-year adjustable-rate mortgages increased slightly from 2.62% one week ago to 2.65% this week. 1-year rates haven't been this high since mid-September 2013.
This increase in mortgage rates during the past two weeks might be partly to blame for the decrease in mortgage applications last week (ending November 6, 2015). According to the MBA Weekly Mortgage Applications Survey, applications for mortgages dropped 1.3% compared to a week earlier.
Meanwhile, the refinance share of mortgage activity rose slightly last week to 59.8% of total applications, compared to 59.7% the previous week. The adjustable-rate mortgage share of activity dropped, however, decreasing from 6.7% of all applications two weeks ago to 6.6% last week.
There have also been fluctuations in the FHA share of total applications last week, which rose to 14.1% compared to 13.2% a week earlier. The VA share of all applications decreased to 10.9% last week compared to 11.9% the previous week, while last week's USDA share of total mortgage applications remained unchanged from the previous week, at 0.7%.